Use this checklist to assess businesses in this industry for SBA 7(a) lending and underwriting.

Owner Role + Licensing Review

• Is the owner the licensed roofer, estimator, or project manager?
• Has labor been normalized with market-rate wages for replacement?
• Are licensing and bonding requirements transferable?
• Is the business reliant on the owner’s personal sales or inspections?

Revenue Quality + Seasonality

• Is revenue tied to storm events, insurance claims, or seasonal spikes?
• Have peak years (e.g., hurricane repairs) been normalized?
• Is there a recurring revenue stream (e.g., maintenance contracts)?
• Are customer contracts or backlogs documented?

CapEx + Equipment Review

• Are trucks, trailers, lifts, or safety equipment included in value?
• Is CapEx normalized for future replacements?
• Are vehicles or tools personally owned or leased?
• Are there signs of deferred maintenance or outdated equipment?

Red Flags

• Owner handles estimating, licensing, and project oversight solo
• Insurance revenue over 30% without contract documentation
• CapEx excluded or deferred on major equipment
• Addbacks include personal fuel, phone, or rental property perks

SBA SOP Tip

Roofing businesses must reflect transferable labor, normalized weather-dependent revenue, and reliable CapEx assumptions. Owner-centric firms without continuity plans may not support FMV.